On December 1, 2024, the (Telecom Network Fraud and Associated Illegal Crime Punishment Measures) jointly issued by the Ministry of Public Security and other departments officially takes effect. This new regulation stipulates that once virtual currency transactions are determined to be related to telecom fraud and associated crimes, all bank cards and phone cards under your name may be frozen, and you will also face credit punishment. So, will all virtual currency transaction activities be punished?
After consulting with lawyer friends in detail, I learned that the answer is: only activities related to telecom fraud and associated crimes, or lending bank cards, phone cards, etc., will be punished. In other words, mere virtual currency transactions will not be punished.
Specifically, if the virtual currency transactions you participate in involve aiding and abetting crimes (helping fraudsters transfer funds), concealment crimes (hiding the source of illegal funds), fraud, etc., or if you provide bank cards, phone cards, etc., for virtual currency transactions to fraud groups, then you will become a target of the new regulations' punishment.
To summarize, as long as your transactions do not involve illegal funds or criminal activities, virtual currency transactions are legal and will not be affected by the new regulations.